**Policy Summary: Rabi Crop Season – Cash Availability Advisory**
This Reserve Bank of India (RBI) circular, dated November 22, 2016, addresses the critical need for adequate financial support to farmers during the Rabi crop season. The RBI advises all Public Sector Banks, Private Sector Banks, Foreign Banks, Regional Rural Banks (RRBs), Urban Cooperative Banks, and State Cooperative Banks to ensure sufficient cash availability to facilitate unhindered farming operations.
The circular estimates that District Central Cooperative Banks (DCCBs) require approximately ₹35,000 crore for sanction and disbursement of crop loans to farmers, at a rate of ₹10,000 crore per week. The National Bank for Agriculture and Rural Development (NABARD) will utilize its cash credit limits up to ₹23,000 crore to enable DCCBs to disburse necessary crop loans to Primary Agricultural Credit Societies (PACS) and farmers.
The RBI directs banks with currency chests to ensure an adequate supply of cash to DCCBs and RRBs. Similarly, all commercial banks, including RRBs, must guarantee sufficient cash availability for their rural branches. Branches located in Agricultural Produce Market Committees (APMCs) should also be provided with adequate cash to facilitate smooth procurement processes.
For further information, contact P. Vijaya Kumar, Chief General Manager, Department of Currency Management, Central Office, Reserve Bank of India, 4th Floor, Amar Building, Sir P.M. Road, P.B. No. 1379, Mumbai – 400 001. Telephone: 91 22 2266 1644; Fax: 91 22 2266 2442; Email: helpdcm@rbi.org.in. Website: www.rbi.org.in.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the banking system.
Rabi Crop Season: The winter cropping season in India.
DCCBs: District Central Cooperative Banks; institutions involved in sanctioning and disbursing crop loans.
NABARD: National Bank for Agriculture and Rural Development; an apex development finance institution in India.
PACS: Primary Agricultural Credit Societies; grassroots level cooperative credit institutions.
RRBs: Regional Rural Banks; banks established to cater to the needs of the rural population.
APMCs: Agricultural Produce Market Committees; marketing boards established by state governments in India to regulate agricultural produce.
P Vijaya Kumar: Chief General Manager, Department of Currency Management, Reserve Bank of India
भारतीय �रज़व र् बक�
RESERVE BANK OF INDIA
www.rbi.org.in
RBI/2016-17/148
DCM (Plg) No.1345/10.27.00/2016-17 November 22, 2016
The Chairman / Managing Director/Chief Executive Officer,
Public Sector Banks / Private Sector Banks / Foreign Banks / Regional Rural Banks /
Urban Co-operative Banks / State Co-operative Banks
Dear Sir,
Making cash available for Rabi Crop Season – Advisory to banks
As you all are aware the Rabi crop season has already commenced and it is imperative
that farmers are adequately supported financially to ensure unhindered farming
operations.
2. It is estimated that about ` 35,000/- crore would be required by the DCCBs for
sanction and disbursement of crop loans to the farmers at the rate of ` 10,000/- crore
per week. NABARD would be utilizing its own cash credit limits up to about ` 23,000
crore to enable the DCCBs to disburse the required crop loans to PACS and farmers.
3. As many of these loans will be disbursed in cash to facilitate farming related
expenses, we advise in this regard that banks with currency chests should ensure
adequate cash supply to the DCCBs and RRBs. Adequate cash supply should also be
ensured for rural branches of all commercial banks (including RRBs). Further, bank
branches located in APMCs may also be given adequate cash to facilitate smooth
procurement.
Yours faithfully,
(P Vijaya Kumar)
Chief General Manager
मुद्रा प्रबंध �वभाग, क�द्र�य कायार्लय, 4थीं मंिज़ ल, अमर �बिल्डगं , सर पी.एम.रोड, पो.बा्.सं.1379, मुंबई – 400 001(भारत)
दरू भाष + 91-22-2266 1644 फैक् स : + 91-22-2266 2442 ई-मेल : helpdcm@rbi.org.in
Department of Currency Management, Central Office, 4th Floor, Amar Building, Sir P.M.Road, P.B.No.1379, Mumbai- 400 001( India )
Tel: + 91-22-2266 1644 Fax : + 91 -22-2266 2442 E-mail : helpdcm@rbi.org.in
�हदं � आसान है, इसका प्रयोग प्रयोग बढ़ाइय।�